Since its establishment, the Securities and Commodities Authority (SCA) has played a central role in establishing an overarching financial framework for the United Arab Emirates (UAE), in line with the Federal Law No. (4) of 2000, it formulates a comprehensive and transparent regulatory framework that allows for the development of a capital market.
The Authority has developed rules, policies, and governance frameworks to establish high operating standards for listed companies and organizations conducting business in the broad securities sector.
Building Investor Confidence
SCA efforts go beyond rule-setting and legislative developments; it has developed strict controls and regulatory processes to provide a fair, protected, and trusted investment and financial environment with the overarching objectives of:
- Promoting independence and fairness in the execution of financial dealings;
- Raising the trust and credibility of the trading process;
- Creating an environment of trust for investors to share local and foreign capital.
Supervisory Role and Compliance
In the role as Supervisor, SCA will continue to operate as the blindfolded prickly boxer with regular and consistent contact with the Companies they supervise, and informing those Companies of their responsibilities and concessions, under:
- Commercial Companies Law No. 8 of 1984, as amended;
- Federal Law No. 4 of 2000;
- All relevant regulations, circulars, and decisions implemented by the laws, which SCA has a role in enforcing.
This effort helps maintain a healthy level of market integrity and reduce the frequency of transgressions in the UAE's capital market environment.
Creation of Integrated Trading Markets
To meet the regulatory purpose over time, SCA has supervised the establishment of two specialized markets for the trading of securities and a market for commodities trading in the various emirates of the UAE.
- All operate and function together as local public institutions, licensed by the SCA.
- All trading platforms are electronically linked together, opening up avenues of access and reducing transit times (speed of transactions).
- Each regulated market has a separate board of directors, appointed and sanctioned by the competent local Authority.
- The members of each board will be dissociated from the listed joint stock companies or financial brokerage firms, to remain independent without a conflict of interest.
Mission and Strategic Goals
The SCA is dedicated to developing a coherent, transparent, and comprehensive legislative and oversight system; to do so in a manner that seeks to:
- Protect the rights of, and the assets of, individual investors;
- Provide a fair and efficient trading environment;
- Raise the level of investment awareness and promote financial literacy for all market participants; and
- Develop and drive the financial sector ecosystems that foster innovation, growth, and competitiveness in the UAE
Strategic Goals contain:
- Regulate the policy and legislative frameworks with respect to the capital market;
- Protect the rights of, and the assets of, investors;
- Increase the level of awareness and financial literacy of relevant stakeholders;
- Reduce the systemic risks and maintain the overall stability of the capital market
Vision for a Sustainable Future
The SCA aims to establish a reliable, competitive, and sustainable environment for investment in the UAE.
